TakaraTomy have told the Reuters newsagency of their post-merger plans which include plans to double their operating profit margin to ten per cent in the year ending March 2011 from 5.3 per cent last business year, in part by reducing the number of products. Other plans include the move of the company’s manufacturing base from China to Vietnam, Thailand and Indonesia to reduce costs and improve quality.
Kantaro Tomiyama, chief executive and president of the company told Reuters: "Following the merger we underwent a period of some internal confusion. But things have stabilised and we’ll be more prepared in a few years time for further growth..... With a good procurement and marketing strategy, they can easily achieve double-digit profitability. But I think we should be able to do that, making full use of our merger benefits.".
Whether moving their factories out of China will see a reduction or increase in thhe amount of toys leaked from the factories, only time will tell.